We have rich conversations with our clients every day, and increasingly these conversations are happening online. We encourage you to ask questions, share your views, and connect with like-minded professionals.

Details

Finance and leasing landscape: Western Europe

Western Europe is a highly competitive and cluttered market where captives dominate. With cars sales expected to increase modestly, the growth in this market is expected to come from additional banking services, new mobility services and insurance offerings.

Market structure and business environment in Western Europe

Solid market potential

Car sales projected to increase slightly

Southern Europe is very instable

Development of the financial crisis/ Euro crisis will have a major impact on the further development

Captives hold a strong market position, e.g.

UK market share of captives seventy percent

German market share of captives sixty-eight percent

Highly competitive market with huge number of players

Well established regulatory rules and refinancing tools

Business friendly market with strong oversight and regulation of the licensing regime

Registration at the national banking of finance service authority necessary

Wholesale and unsecured debt, deposits, bonds as well as ABS transactions are very common sources for refinancing

Moderate Risk potential

Business characteristics of Western Europe finance and leasing market

Very well established captives business model with a broad service portfolio including sophisticated banking products

Very high customer acceptance

Private customers account for fifty to seventy percent of new cars and are financed or leased in most European countries

Fifty-five percent of company cars are leased with operational leasing arrangements dominating

Share this

Get in touch with KPMG

Download as PDF

About the study

Global automotive finance and leasing: The role of product diversification and emerging markets in future growth is based on desk research and in-depth interviews with senior executives representing key leasing and financing participants including banks, captives and independent auto leasing and financing organizations from China, France, Germany, India, Japan, Russia and the UK.